Vanguard Long-Term Bond (BLV) Enters Oversold Territory

In trading on Monday, shares of the Vanguard Long-Term Bond ETF (BLV) entered into oversold territory, changing hands as low as $93.1346 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

In the case of Vanguard Long-Term Bond, the RSI reading has hit 28.5 — by comparison, the RSI reading for the S&P 500 is currently 55.1.

A bullish investor could look at BLV's 28.5 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.

Looking at a chart of one year performance (below), BLV's low point in its 52 week range is $87.23 per share, with $99.66 as the 52 week high point — that compares with a last trade of $93.26. Vanguard Long-Term Bond shares are currently trading down about 0.4% on the day.

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